Question
select all true statements: A.) If markets are in equilibrium and the expected return of the market is 13%, a stock with a beta of
select all true statements:
A.) If markets are in equilibrium and the expected return of the market is 13%, a stock with a beta of 1 should have an expected return of 13%
B.) CAPM can be used to estimate the required return of an asset given its beta, the required return of the market and the risk free rate
C.) CAPM can be used to estimate the required return of an asset given its standard deviation, the required return of the market and the risk free rate
D.) Holding everything else constant, assets with higher betas should have higher required returns
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